Skydiving School, Inc. v. Sky-Med, Inc.

District Court, D. Hawaii·Decided September 30, 2024·No. 1:23-cv-00292·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF HAWAII

SKYDIVING SCHOOL, INC., ) CIVIL NO. 23-00292 DKW-WRP ) Plaintiff, ) FINDINGS AND ) RECOMMENDATION TO GRANT vs. ) IN PART DEFENDANTS GOJUMP ) AMERICA, LLC, GOJUMP GOJUMP AMERICA, LLC, ) HAWAII LLC, AND MICHAEL GOJUMP HAWAII LLC, and ) VETTER’S MOTION FOR AN MICHAEL VETTER, et al., ) AWARD OF ATTORNEYS’ FEES ) AND NON-TAXABLE COSTS Defendants. ) )

FINDINGS AND RECOMMENDATION TO GRANT IN PART DEFENDANTS GOJUMP AMERICA, LLC, GOJUMP HAWAII LLC, AND MICHAEL VETTER’S MOTION FOR AN AWARD OF ATTORNEYS’ FEES AND NON- TAXABLE COSTS

Before the Court is Defendants GoJump America, LLC, GoJump Hawaii, LLC (GJH), and Michael Vetter’s (collectively, “GoJump Defendants”) Motion for an Award of Attorneys’ Fees and Non-Taxable Costs (Motion), filed on April 9, 2024. See Motion, ECF No. 87. Plaintiff Skydiving School, Inc. doing business as Skydive Hawaii (Plaintiff) filed its Opposition, see Opp. ECF No. 91, followed by GoJump Defendants’ Reply. See Reply, ECF No. 92. The Court thereafter requested supplemental briefing, which GoJump Defendants and Plaintiff filed on July 18, and August 1, 2024, respectively. See Supp. Decln. of Gregory Kugle, ECF No. 94; Supp. Decln. of Michael Lane, ECF No. 95; Plf’s Supp. Opp., ECF No. 96. This matter is suitable for disposition without a hearing pursuant to Rule 54.2(g) of the Local Rules of Practice of the United States District

Court for the District of Hawaii (Local Rules). After careful consideration of the parties’ submissions and the relevant legal authority, the Court FINDS AND RECOMMENDS that GoJump Defendants’ Motion be GRANTED IN PART.1

FACTUAL AND PROCEDURAL BACKGROUND The parties2 are familiar with the facts of this case and, therefore, the Court does not repeat them in detail here but recounts the factual allegations relevant to the present Motion.

According to the Complaint, Plaintiff, Sky-Med, and GJH are direct competitors engaged in the same business at the same location: skydiving instruction and related services at Dillingham Airfield on the North Shore of Oahu,

Hawai‘i. See Compl., ECF. No. 1 at ¶¶ 5-6, 8, 13.

1 Within fourteen days after a party is served with the Findings and Recommendation, pursuant to 28 U.S.C. § 636 (b)(1), a party may file written objections in the United States District Court. A party must file any objections within the fourteen-day period to preserve appellate review of the Findings and Recommendation. 2 In addition to GoJump Defendants, Plaintiff also named the following parties as defendants in this case: Sky-Med, Inc. dba Pacific Skydiving (Sky-Med) and Guy Banal (collectively, “Sky-Med Defendants”). Sky-Med Defendants and GoJump Defendants are collectively referred to as “Defendants.” 2 Plaintiff owns six registered trademarks, including a trademark for the phrase “Skydive Hawaii”. See id. at ¶¶ 14-15. In 2013 and 2014, Plaintiff and

Sky-Med Defendants were parties to a trademark infringement action in this Court (the First Litigation), wherein Plaintiff alleged that its “Skydive Hawaii” trademark was infringed. See id. at ¶ 27. In the First Litigation, the court denied Plaintiff’s

motion for preliminary injunction, finding that, upon weighing the evidence at the preliminary stage of the litigation, there was an insufficient likelihood of confusion between “Skydive Hawaii” and “Pacific Skydiving Hawaii” to warrant emergency injunctive relief. See Order (1) Granting In Part Defendants GoJump America,

GoJump Hawaii, and Michael Vetter’s Motion To Dismiss, (2) Denying As Moot Plaintiff’s Motion For Preliminary Injunction, and (3) Directing Supplemental Briefing on Counts II and IV of the Complaint (Order Dismissing Federal Claims),

ECF No. 60 at 4. Thereafter, the First Litigation settled pursuant to a settlement agreement between the parties. See id. In this current litigation filed on July 13, 2023, Plaintiff alleges that Defendants have wrongfully used Plaintiff’s “Skydive Hawaii” trademark in

phrases such as: “Skydiving Over Hawaii,” “Skydive Hawaii with GoJump,” “Skydiving in Hawaii,” and “Hawaii Skydiving”. See id. at 6-7; Compl., ECF No. 1 at ¶¶ 57-61. Plaintiff also alleges that there have been numerous instances of

confusion by customers between the services provided by Plaintiff and Defendants. 3 See Compl., ECF No. 1 at ¶¶ 71-75. Plaintiff asserted four causes of action in this case: trademark

infringement against all Defendants under the Lanham Act, 15 U.S.C § 1051 et seq. (Count I); unfair competition against all Defendants, in violation of 15 U.S.C. § 1125 (Count II); breach of the settlement agreement regarding the First Litigation

against all Defendants (Count III); and intentional interference with contractual relations against the GoJump Defendants (Count IV). On October 25, 2023, a settlement was reached between Plaintiff and Sky-Med Defendants. See Minute Orders, ECF Nos. 58, 59. Plaintiff

subsequently dismissed Sky-Med Defendants on February 15, 2024. See Stipulation for Dismissal with Prejudice of All Claims Against Defendants Sky- Med, Inc. dba Pacific Skydiving and Guy Banal, ECF No. 76.

On November 22, 2023, the district court issued an order granting in part Go-Jump Defendants’ Motion to Dismiss. See Order Dismissing Federal Claims, ECF No. 60. The order dismissed the federal claims in Counts I and II and asked for supplemental briefing on whether Counts III and IV are moot. -S-ee- -id-. at

23-25. As to the federal claims, the district court stated that GoJump Defendants’ use of “Skydive Hawaii” constitutes “classic fair use” and that

Plaintiff’s position otherwise is “simply untenable”: 4 Having reviewed the parties’ briefing, the record, and relevant case law, the Court agrees that the GoJump Defendants’ alleged uses of “Skydive Hawaii” constitute “classic fair use.” Notably, in choosing the phrase “Skydive Hawaii” as its trademark, Plaintiff elected to use the most common word to describe its service − “skydive” − along with the name of the State where those services take place − “Hawaii.” Plaintiff cannot, therefore, complain that a business rival also now desires to use those obvious words, and others, in describing its services. Plaintiff further seeks to monopolize the words “skydive” and “skydiving” when used in any brief sentence with “Hawaii”, such as “skydiving in Hawaii”, and even prevent the GoJump Defendants from using their own company name in a sentence with “Hawaii” and/or “skydiving.” Because this is simply untenable, as more fully discussed herein, Plaintiff’s claims premised upon federal trademark law (Counts I & II) must be DISMISSED. Moreover, because amendment of the Complaint would not change this result, leave to amend those claims is not warranted.

See id. at 2-3 (italicized emphasis in original). Thus, Plaintiff’s federal claims were dismissed without leave to amend. See id. at 3, 23, 25. As to the state law claims in Counts III and IV, after reviewing the parties’ supplemental briefs, the district court declined to exercise supplemental jurisdiction over them and dismissed Counts III and IV without prejudice. See Order Declining to Exercise Supplemental Jurisdiction Over Counts III and IV of the Complaint and Dismissing the Same Without Prejudice, ECF No. 77. Judgment was thereafter entered. See Clerk’s Judgment, ECF No. 89. 5 GoJump Defendants now seek to recover attorneys’ fees and costs under the Lanham Act, 15 U.S.C. § 1117

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Skydiving School, Inc. v. Sky-Med, Inc., (D. Haw. 2024).

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